REG - Orosur Mining Inc - Colombia Update

Orosur MiningAnnouncement

09/11/2021 07:00

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RNS Number : 7221R  Orosur Mining Inc  09 November 2021

 

 

 

 

Orosur Mining Inc. - Colombia Update

 

·    Assays from five additional holes

·    Most holes drilled for geological and stratigraphic reasons

·    Thick anomalous zones of mineralisation intersected

·    Operational handover of Anzá now largely complete

 

London, November 9th, 2021. Orosur Mining Inc. ("Orosur" or the "Company")
(TSX-V/AIM:OMI), is pleased to announce an update on the Company's Anzá
Project in Colombia.

 

For the full PDF version of the announcement with Table 1 and Figures 1-6
included, please refer
to: http://www.rns-pdf.londonstockexchange.com/rns/7221R_1-2021-11-8.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7221R_1-2021-11-8.pdf)

 

Drilling Summary, Anzá

A major phase of drilling was undertaken at Anzá from October 2020 through to
the end of June 2021, designed to confirm the potential of the core APTA
deposit at Anzá and to provide sufficient information to allow the Company's
JV partner Minera Monte Águila SAS ("Monte Águila")to move forward into the
next annual period of the Exploration Agreement with Venture Option
("Exploration Agreement"). Once this was achieved, the number of drill rigs
was reduced from five to one, with focus shifting to better understanding the
regional picture and to mapping and sampling of the other licences and
applications to identify targets for the next phase of work.

 

Reducing to one drill rig allowed geologists to be redeployed to mapping
activities, with the remaining drill rig focussed near the margins of the APTA
deposit, to address several regional stratigraphic questions and to provide
greater guidance as to the controls on the previously identified high grade
mineralisation at APTA.

 

Drilling Results, Anzá

Assay results for five additional diamond drillholes have been received from
the ALS laboratory in Lima, Peru, MAP-092 to MAP-096.

 

Highlighted results from these holes include:

 

MAP-093       14.85m @ 1.60g/t Au, 1.08g/t Ag, 0.79% Zn

MAP-094       8.55m @ 0.96g/t Au, 5.88g/t Ag, 0.34%Zn

                        5.35m @ 1.17g/t Au, 2.18g/t Ay,
0.79% Zn

                        10.70m @ 1.08g/t Au, 0.24g/t
Ag, 0.03% Zn

MAP-096       2.70m @ 2.84g/t Au, 1.12g/t Ag, 0.07%Zn

51.55m @ 1.32g/t Au, 1.34g/t Ag, 0.35%Zn

 

 

Full results are detailed in Table 1.

 

 

Table 1. Drill Intercepts*.

*          Intersections are reported as down-hole widths, not true
widths.  The Company does not yet have sufficient drilling information to
accurately calculate true widths of drill hole intersections.

 

 

Holes MAP-092 and MAP-095 were collared well away from the known
mineralisation at APTA (Figure 1) and were drilled in the opposite direction
to current drilling, from west to east. Both of these holes were designed to
assess the regional geology and to test the idea that the target stratigraphy
identified at APTA represented the eastern limb of an anticline and would be
repeated to the west. These holes were purely stratigraphic and were not
expected to intersect mineralisation.

 

 

Figure 1.  Drill Collar Locations - APTA

 

Hole MAP-093 was targeted to test the down dip continuity of the stratigraphic
section related to the historical La Pastorera gypsum mine.  The footwall
breccia was identified and was mineralised to a moderate degree (Figure 2).

 

Figure 2. Section, Hole MAP-093

 

Hole MAP-094 was targeted to test the southern extension of a high-grade pod
defined in previous drilling. A substantial thickness of moderately
mineralised breccia was identified (Figure 3).

 

Figure 3. Section, Hole MAP-094

Hole MAP-096 (like holes 092 and 095) was drilled from the west to test a
geological hypothesis related to possible anticlinal folding of the
mineralised stratigraphy.This hole confirmed the existence of such folding,
and thus opens the potential for folded repetition of higher grades further
down the western limb (Figure 4).  This potential will be tested with later
drilling.

 

 

Figure 4. Section, Hole MAP-096

 

Regional Mapping and Sampling

Most drilling to date has been concentrated at the central APTA deposit in the
central granted licence of the Company's 200km2 tenement package (Figure 5).

 

However, with reduction to one drill rig in June, exploration teams were
deployed to field mapping and sampling activities in other licences, albeit
subject to limitations related to Covid-19 which was still proliferating
through the region at the time.

 

Most of this activity focused on the NE integrated tenement, around the Pepas
and Pupino working areas.

 

Extensive programs of soil and rock sampling, BLEG sampling, geological
mapping and geophysics commenced and will continue after handover of
operational control of the project to partner Monte Águila. Terrain in this
region is extremely rugged and thus progress is slow, however substantial
coverage has now been achieved. Complete geochemical results are still pending
however preliminary results are encouraging and suggest the northern extent of
the Aragon fault is prospective.

 

Figure 5.  Licence package and prospects

 

 

Figure 6.  Sampling, Pepas and Pupino

 

 

 

Conversion of Applications

Of the Company's land package, two major areas remain at the application stage
and are therefore not accessible for exploration involving any form of ground
disturbance - these areas contain the La Cejita and Jesuitas prospects.

 

With acceleration of work under the Exploration Agreement, it is hoped to
advance these into granted status as quickly as possible, however this process
requires, among other things, substantial public hearings, which have only
recently begun again, after a long abeyance during Covid-19.

 

The Company is currently seeking to accelerate this process now that Covid-19
is beginning to abate in the region.

 

Operational Handover

As announced on September 7 2021, the Company's Joint Venture partner Monte
Águila elected to exercise its right to assume operatorship of the Anzá
Project. The handover is now substantially complete, with Monte Águila now
exercising effective control of the project.

 

Monte Águila, a 50/50 JV between Newmont Corporation ("Newmont") (NYSE:NEM,
TSX:NEM) and Agnico Eagle Mines Limited ("Agnico") (TSX:AEM) is the vehicle by
which these two companies jointly exercise their rights and obligations with
respect to the Exploration Agreement.

 

As per the terms of the Exploration Agreement, the Company remains the 100%
owner of the licences and applications until such time as Monte Águila earns
their initial 51% interest in the project (Phase 1) prior to September 6(th),
2022. As such, the Company remains responsible for most government related
functions and will retain a core team in Medellin to work alongside Monte
Águila in the management of this process.

 

 

Orosur CEO Brad George commented:

"The decision by our partners to take over operatorship of Anzá was both positive and welcome, being testament to how two of the world's largest gold miners see the region. The handover process is substantially complete. The financial and technical resources that can now be brought to bear are without parallel and we look forward to them substantially ramping up activity."

 

 

For further information, please contact:

 

Orosur Mining Inc

Louis Castro, Chairman,

Brad George, CEO

info@orosur.ca

Tel: +1 (778) 373-0100

 

SP Angel Corporate Finance LLP - Nomad & Joint Broker

Jeff Keating / Caroline Rowe

Tel: +44 (0) 20 3 470 0470

 

Turner Pope Investments (TPI) Ltd - Joint Broker

Andy Thacker

James Pope

Tel: +44 (0)20 3657 0050

 

Flagstaff Communications and Investor Communications

Tim Thompson

Mark Edwards

Fergus Mellon

orosur@flagstaffcomms.com

Tel: +44 (0)207 129 1474

 

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.  Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

Drill Hole Details - 2020/2021 Programme*

 Hole ID  Easting (m)  Northing (m)  Elevation asl (m)  Dip (°)   Azimuth (°)
 MAP-072  400088       694745        1075               -55       293
 MAP-073  400018       694503        1097               -58       295
 MAP-074  399981       694684        1110               -58       295
 MAP-075  400168       694723        1024               -55       295
 MAP-076  400019       694527        1107               -50       295
 MAP-077  400168       694723        1024               -69       295
 MAP-078  399917       694719        1112               -50       295
 MAP-079  399995       693976        960                -55       295
 MAP-080  400231       694580        966                -55       295
 MAP-081  400045       693950        920                -55       295
 MAP-082  400176       694797        1020               -50       296
 MAP-083  400176       694797        1020               -60       310
 MAP-084  400045       693950        920                -57       321
 MAP-085  400167       694552        1000               -46       247
 MAP-086  400067       694360        1068               -54       295
 MAP-087  400027       694168        988                -54       290
 MAP-088  400168       694723        1024               -55       341
 MAP-089  400067       694360        1068               -59       317
 MAP-090  400041       694630        1059               -56       296
 MAP-091  400060       694715        1089               -50       295
 MAP-092  399420       695235        1162               -50       138
 MAP-093  400055       694203        1006               -59       290
 MAP-094  399954       694347        1031               -64       303
 MAP-095  399722       695252        1113               -50       135
 MAP-096  399759       694632        1082               -57       127

*  Coordinates WGS84, UTM Zone 18

 

About Orosur Mining Inc.

 

Orosur Mining Inc. (TSX-V: OMI; AIM: OMI) is a minerals explorer and developer
focused on identifying and advancing projects in South America. The Company
currently operates in Colombia and Uruguay.

 

About the Anzá Project

Anzá is a gold exploration project, comprising three exploration licences,
four exploration licence applications, and several small exploitation permits,
totalling 207.5km2 in the prolific Mid-Cauca belt of Colombia.

 

The Anzá Project is currently wholly owned by Orosur via its subsidiary,
Minera Anzá S.A.

 

The project is located 50km west of Medellin and is easily accessible by
all-weather roads and boasts excellent infrastructure including water, power,
communications and large exploration camp.

 

The Anzá Project is subject to an Exploration Agreement with Venture Option
dated September 7th, 2018, as announced on September 10th, 2018, (the
"Agreement") between Orosur's 100% subsidiary Minera Anzá S.A and Minera
Monte Águila SAS, a 50/50 joint venture between Newmont and Agnico.

 

 

Qualified Persons Statement

The information in this news release was compiled, reviewed, and verified by
Mr. Brad George, BSc hons (Geology and Geophysics), MBA, Member of the
Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Ltd and a
qualified person as defined by National Instrument 43-101.

 

Orosur Mining staff follow standard operating and quality assurance procedures
to ensure that sampling techniques and sample results meet international
reporting standards.

 

Drill core is split in half over widths that vary between 0.3m and 2m,
depending upon the geological domain. One half is kept on site in the Minera
Anzá core storage facility, with the other sent for assay.

 

Industry standard QAQC protocols are put in place with approximately 20% of
total submitted samples being blanks, repeats or Certified Reference Materials
(CRMs).

 

Samples are sent to the Medellin preparation facility of ALS Colombia Ltd, and
then to the ISO 9001 certified ALS Global laboratory in Lima, Peru.

 

30 gram nominal weight samples are then subject to fire assay and AAS analysis
for gold with gravimetric re-finish for overlimit assays of >10g/t.
ICP-MS Ultra-Trace level multi-element four-acid digest analyses is also
undertaken for such elements as silver, copper, lead and zinc, etc.

 

Gold intersections are reported using a lower cut off of 0.3g/t Au over 3m.

 

Forward Looking Statements

 

All statements, other than statements of historical fact, contained in this
news release constitute "forward looking statements" within the meaning of
applicable securities laws, including but not limited to the "safe harbour"
provisions of the United States Private Securities Litigation Reform Act of
1995 and are based on expectations estimates and projections as of the date of
this news release.

 

Forward-looking statements include, without limitation, the exploration plans
in Colombia and the funding from Monte Águila of those plans, Monte
Águila´s decision to continue with the Exploration and Option agreement, the
ability for Loryser to continue and finalize with the remediation in Uruguay,
the ability to implement the Creditors' Agreement successfully as well as
continuation of the business of the Company as a going concern and other
events or conditions that may occur in the future. The Company's continuance
as a going concern is dependent upon its ability to obtain adequate financing,
to reach profitable levels of operations and to reach a satisfactory
implementation of the Creditor´s Agreement in Uruguay. These material
uncertainties may cast significant doubt upon the Company's ability to realize
its assets and discharge its liabilities in the normal course of business and
accordingly the appropriateness of the use of accounting principles applicable
to a going concern. There can be no assurance that such statements will prove
to be accurate. Actual results and future events could differ materially from
those anticipated in such forward looking statements. Such statements are
subject to significant risks and uncertainties including, but not limited,
those as described in Section "Risks Factors" of the MDA and the Annual
Information Form. The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events and such forward-looking statements, except to the
extent required by applicable law.

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